Best Investment Strategies Guide For Beginners

Best Investment Strategies For Beginners

To enjoy a trouble-free future, you absolutely need to have good financial health. For most people, the way to achieve this is through investing. Even a stable economy can be flipped over by circumstances beyond control. Having a good investment strategies can help you navigate through these tough times. Not only does this secure you financially, but the investment also helps fund your retirement. 

Above all, it increases your ability to purchase over time. And while investing with the prospect of growth is fine for a beginner, you’ll want to offset risk through safe investments. Depending on your stomach for risk, there are many investment strategies for beginners. Generally, you’ll want to focus on growth in the beginning with high reward options like crypto and then phase out to safer options like fixed deposit as you get older. Here is a guide to the best investment strategies for a complete beginner. 

Top Investment Strategies For Beginners

Here are some of the top tips and strategies to kick start your investment journey

Start early

This cannot be emphasized enough. Early investments are the best investments for beginners. Early investors reap large returns during the maturity period due to the power of compounding. Investing young is one of the best ways to increase the return on your funds. It is recommended for beginners to start investing as soon as they start earning. It’s okay to start small but invest with discipline. 

There will be a lot of swings in the market. Starting early means you will be afforded plenty of time to ride it out. If you think you will just keep cash as savings then that’s a bad idea. Inflation eats the value of your money over time. By keeping it stagnant, you’re losing money. This is why it is best to start early and give your money decades to grow. 

Set your goals

Before you start your investment journey, you need to figure out your goals. Are you saving for your retirement? Your marriage? A house or car? Or are you just looking for tax-saving investment strategies? Having solid goals is very important as it gives purpose to your investment. This makes it easier for you to stick to your investment plan every month. A goal also helps you figure out exactly how much money you will need to save in a particular time period. By figuring this out, you can craft a solid investment plan to follow through. 

Decide how much to invest

You need to set aside a fixed amount of your income to invest. Instead of arbitrarily investing what you have on hand, decide on a percentage of your income. You can spend any excess income on your expenses. This will help you make disciplined investments and keep track of it. Instead of investing whatever you have on hand, a fixed amount of money will help you reach your goals more quickly. To decide on how much you should invest, consider your goal and time horizon. 

Make out rough examples and run some numbers to come to a decision. For example, if you want to retire, decide how much you want for your retirement, and then figure out your monthly investments to reach that goal in time. A SIP investment calculator can help you out in this. As a general rule of thumb, you should be investing at least 20% of your income. That may seem excessive or difficult in the beginning but its dividend pays off later.

Have an investment account

If you are serious about investment, then you need to have a separate account for your investments and savings. This is a common mistake a lot of beginners make. Having the same account for investment and regular finances is a bad idea. Your regular account is used a lot. And seeing such big numbers, it can be highly tempting to spend them on something. 

A separate account will also help you keep track of your investments in a much better manner. Along with a bank account, you should also open a demat account or set-up a crypto wallet for investment in stocks, crypto, and mutual funds. Most banks also offer brokerage services so this can be  quite easy to do. 

Know your investment options

Beginners often think keeping their money in the bank is the best option. While it is undoubtedly the safest and most stable option, it is not the only one. Not only that, bank interest often just barely matches the inflation rate, resulting in very little actual growth. The market has so many other options to choose from that offer higher returns. However, they also carry higher risks. Still, it is important to be aware of them all. 

Stocks: The most growth-oriented investment option. Stocks are shares of a company that are offered through the stock market. 

Bonds: These are essentially loans given to a country or company by you. You get a fixed amount of interest either annually or bi-annually. They’re quite safe and stable. 

Mutual Funds: A mix of investment types, that include stocks and bonds of all kinds. Their diversification makes them less risky while providing high growth. 

Crypto: The crypto ecosystem is vast. There are plenty of investment options to choose from such as cryptocurrencies, NFTs, crypto tokens, crypto coin trust, crypto index, etc. 

Exchange-traded fund: Or ETF is the same as mutual funds. The only difference is that it is traded throughout the date. As its price is lower than that of a mutual fund, it is good for beginners. 

Create a plan

The goal you have in mind should determine your investment strategy. Depending on it, you can allocate your funds to various asset classes. For example, if you are investing for retirement, almost all of your funds should go towards stocks, crypto or mutual funds. Use an investment calculator to get an idea of your investment and expected returns. Similarly, if you have a short-term goal and need guaranteed returns, asset classes like bonds or bank savings and investment strategies like crypto staking which give assured returns are much more stable and secure. 

You can also invest in ETFs or index funds if you want your money to move in alignment with the stock market. If your country has a lot of potential for economic growth, the index is bound to grow and so will your money. As you get older, move your money from volatile assets to safer options. 


With this, beginner investors should have a good idea of how to invest strategically. Investment is the best way for wealth generation and new investors need not get overwhelmed by their choices. Investment is neither complex nor the game of big players. Everyone can start small and go from high-growth options like crypto to lower-risk ones like bonds over time. And while it may be daunting at first, discipline is the key as in all things. 


  1. What is a lazy fund portfolio?

A lazy fund portfolio is a specifically designed portfolio that does well in almost all Market conditions. While it may not give high returns, it is very safe and stable.

  1. What is the rule of 72?

It is a rule that tells you how long it takes to double your money at a particular growth rate. For instance if you get 8% annual returns, divide 72 by 8 and you will get the years in which your money be doubled.

  1. What is the 70,20,10 rule?

According to this rule, 70% of your annual budget should go towards expenses, 20% towards saving and 10% towards investment.

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